By Banu Simmons Going forward, I am positive about the information technology (IT) sector. With improving business confidence, I believe that capital expenditure ( Capex) spending of U.S. companies, which has been subdued so far, will grow faster, creating a stronger demand for sectors such as semiconductors, cloud computing, and e-commerce. In the month of August, I made three changes to the Long Only Sector Rotation portfolio. I increased exposure to the 3D printer producer, Stratasys (SSYS). In the last three months, 3D stocks have had a disappointing performance as the stocks were oversold by some short-sighted investors in my opinion. We find the growth story in the 3D industry very compelling, and continue to expect outperformance in the coming months. We also bought the stock in the ratings agency Moody's (MCO) as our top-down stock selection model puts this stock in the top 25th percentile. MCO provides credit ratings, economics research, data, and analytical tools globally. The company has an excellent return on equity and increasing profit margins. Moody's revenue and income growth is above the sector average, and the earnings surprise trend has been increasingly positive in the last three quarters. Furthermore, I believe that the ECB's attempt to revive the asset-backed security market in Europe could lead to more securitizations and higher demand for the services of rating agencies. I also added Flextronics (FLEX) to the portfolio. I'm bullish on technology stocks and FLEX falls into the top 20th percentile of my stock universe. FLEX is a provider of advanced design, manufacturing and services to original equipment manufacturers of a range of electronic products, which includes its mobile devices business, including smart phones, and consumer electronics, including game consoles, high-volume computing business, including notebooks and printers. The company's P/E ratio is below the industry average. Moreover, FLEX has a strong revenue and earnings growth, a high return on equity and its earnings per share has beaten the market expectations in the last four quarters. Furthermore, this company is engaged in buy-back programs. In my opinion, this program may benefit the stock price in the coming months.